abort: could not symlink

[Joseph Turian]

I tried to pull, but I had new heads.
When I did an hg merge, I got a wacky error, because I had moved a file and
changed its original path to a symlink in the head.
I got the following error

$ hg merge
merging code/testserver.py and code/backend/backend.py to
code/backend/backend.py
abort: could not symlink to '#!/usr/bin/env python\n#\n#   Se.... [the rest
of the script]

How do I resolve this?
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